A summary of ICAEW’s reaction to the Accounting Standards Board’s proposed brand new standard for ‘public benefit entities’
The planned new Financial Reporting Standard for Public Benefit Entities (FRSPBE) marks a fresh departure for accounting in the sector. Many entities that will be caught by the new standard will currently be subject to a SORP, but many will not previously have been subject to sectorial specific requirements.
By establishing a single set of principles (backed up by the detailed guidance in the SORPs which will remain), the FRSPBE raises the prospect of greater consistency in accounting principles across the public benefit sector. However, despite the great advantage brought by a single new standard it appears that the SORPs will still have some differences in approach.